LOCAL authorities are set to gain from juggling of funding arising from the elimination of water charges, the Budget figures revealed yesterday.
The collection of motor revenues is expected to be in the region of three times as lucrative as the collection of water service charges.
The greatest change for local authorities will be the elimination of water and sewerage charges, but at the same time, local authorities will gain from the assignment of motor vehicle duties.
Before the proposed adjustments, local authorities ware expecting to earn £55 million from water and sewerage charges. The rates support grant to local authorities would have added an additional £198 million, giving a total of £253 million.
The new figures show that in all, they will be receiving about 2 per cent more. The total will be made up of a projected £168 million from motor duty revenues and another £100 million from the rates support grant to local authorities. However, there is also a reduced provision for capital grants of £9.5 million, leaving a total of £258.5 million.
The elimination of water charges was announced before Christmas by the Minister for Finance, Mr Quinn, along with the elimination of the residential property tax.